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Indian firm plans to set up IC design centre in Malaysia [New Straits Time (Malaysia)]

(New Straits Time (Malaysia) Via Acquire Media NewsEdge) BANGALORE: A subsidiary of a large Indian conglomerate plans to set up an integrated circuit (IC) design centre in Malaysia that will contribute significantly to Malaysia's skills development in the high-technology sector.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said the company, which is based here, already has small operations in Malaysia.

"They are keen to scale up their operations and make Malaysia a hub for electrical and electronics (E&E) design," he said here after a series of closed-door meetings with Indian companies as well as Malaysian companies with operations in India.

Mustapa, however, did not name the company but was hopeful that the design centre will be operational by the end of the year.

On the estimated investment involved in the proposed centre, he said it is not so much about the amount of business, but the spin- offs, especially in terms of skilled human capital.

"They will collaborate with universities to produce skilled manpower (for the centre)," he added.

He said this will be significant to Malaysia which has about 30 IC design centres and targets to attract more such centres.

The minister said representatives from other Indian companies whom he had met expressed their interest to set up operations in Malaysia.

"I've invited them to come to Malaysia and they will be meeting with the Malaysian Investment Development Authority and Malaysia External Trade Development Corp for discussions," he said.

He said these companies will benefit from a host of generous incentives offered under the Multimedia Super Corridor.

Mustapa is also upbeat on the expansion of bilateral trade and investment with India.

He said although India faced some challenges in the past two years, the country's economic prospects look good this year.

Among the representatives from Malaysian companies that held private discussions with the minister are Scomi Engineering and UEM Group, while the Indian companies include Shriram Land, Mindtree Ltd and Tata Elxsi Ltd.

Mustapa is leading a four-day trade and investment mission comprising small and medium enterprises, as well as to attend the 20th Partnership Summit and Malaysia-India CEO Forum.